ENN and Hony are associated shareholders of Santos with an aggregate relevant interest of 15.1 per cent of Santos shares.
The strategic relationship will become effective and remain in effect for so long as ENN and Hony have a relevant interest in 15 per cent or more of Santos shares.
“Santos welcomes the formalisation of a strategic relationship with Hony and ENN,”? said Santos Chairman Peter Coates.
“Hony became a major shareholder in 2015 and together with ENN has continued to support Santos through challenging times.
“We look forward to a closer relationship with Hony and ENN and their support for the continued growth of Santos for the benefit of all shareholders.”?
The strategic relationship is based on mutual cooperation and assistance in order to support the growth of Santos.
It is the intention of ENN and Hony that Santos will be the primary investment vehicle for material investment by them in upstream gas reserves and LNG production in Australia and Papua New Guinea.
ENN and Hony will support future investment by Santos and Santos will use reasonable endeavours to include ENN and Hony in investment opportunities where it is in the best interests of Santos shareholders as a whole.
As part of the strategic relationship, Mr Eugene Shi will join the Board as a non-executive director.
Mr Shi is Vice President ENN Ecological Holdings Ltd and has more than 20 years’ experience across capital markets, M&A, strategy and business development.
The agreement will terminate if ENN and Hony cease to have a relevant interest in at least 15 per cent of Santos shares or may be terminated by Santos, ENN or Hony 12 months after ENN ceases to have any nominee Director on the board of Santos.